ALLSTATE VEHICLE AND PROPERTY INSURANCE COMPANY

Transcription

1 Page 1 of 29 ALLSTATE VEHICLE AND PROPERTY INSURANCE COMPANY House & Home Policy AVP81 Policy number Policy effective Policyholders Allstate Vehicle and Property Insurance Company The Company Named in the Policy Declarations A Stock Company---Home Office: Northbrook, Illinois 60062

2 Page 2 of 29 Table of Contents Agreements We Make With You...4 General...4 Definitions Used In This Policy...4 Insuring Agreement... 5 Conformity To State Statutes... 5 Coverage Changes... 5 Policy Transfer...6 Continued Coverage After Your Death...6 Cancellation...6 Misrepresentation, Fraud Or Concealment...6 What Law Will Apply...6 Where Lawsuits May Be Brought...6 Action Against Us... 7 Arbitration... 7 Section I Your Property... 7 Dwelling Protection Coverage A... 7 Property We Cover Under Coverage A... 7 Property We Do Not Cover Under Coverage A... 7 Other Structures Protection Coverage B... 7 Property We Cover Under Coverage B... 7 Property We Do Not Cover Under Coverage B... 7 Losses We Cover Under Coverages A and B...8 Losses We Do Not Cover Under Coverages A and B...8 Personal Property Protection Coverage C Property We Cover Under Coverage C Limitations On Certain Personal Property Property We Do Not Cover Under Coverage C Losses We Cover Under Coverage C...13 Losses We Do Not Cover Under Coverage C Section I Additional Protection Additional Living Expense Civil, Governmental And Military Authorities Debris Removal Emergency Removal Of Property Fire Department Charges Temporary Repairs After A Loss Trees, Shrubs, Plants And Lawns Power Interruption Arson Reward Collapse Land Lock Replacement Section I Conditions...18 Deductible...18 Insurable Interest And Our Liability...18 What You Must Do After A Loss...18 Our Settlement Options...19 How We Pay For A Loss...19 Our Settlement Of Loss Appraisal Abandoned Property Permission Granted To You Our Rights To Recover Payment Our Rights To Obtain Salvage Action Against Us Loss To A Pair Or Set Glass Replacement No Benefit To Bailee Other Insurance Property Insurance Adjustment Mortgagee Mold, Fungus, Wet Rot And Dry Rot Remediation As A Direct Result Of A Covered Water Loss Section II Family Liability And Guest Medical Protection Family Liability Protection Coverage X Losses We Cover Under Coverage X Losses We Do Not Cover Under Coverage X Guest Medical Protection Coverage Y Losses We Cover Under Coverage Y Losses We Do Not Cover Under Coverage Y Section II Additional Protection Claim Expenses Emergency First Aid Damage To Property Of Others Section II Conditions What You Must Do After A Loss What An Injured Person Must Do Guest Medical Protection Coverage Y Our Payment Of Loss Guest Medical Protection Coverage Y Our Limits Of Liability Bankruptcy Our Rights To Recover Payment Family Liability Protection Coverage X Action Against Us Other Insurance Family Liability Protection Coverage X N N CW

3 Page 3 of 29 Section III Optional Protection...28 Optional Coverages...28 Building Codes Coverage BC...28 Increased Coverage On Business Property Coverage BP...28 Fire Department Charges Coverage F...29 Loss Assessments Coverage G...29 Extended Coverage On Jewelry, Watches And Furs Coverage J...29 Increased Coverage On Theft Of Silverware Coverage ST...29

4 Page 4 of 29 Agreements We Make With You We make the following agreements with you: General Definitions Used In This Policy Throughout this policy, when the following words appear in bold type, they are defined as follows: 1. Bodily injury means physical harm to the body, including sickness or disease, and resulting death, except that bodily injury does not include: a) any venereal disease; b) herpes; c) Acquired Immune Deficiency Syndrome (AIDS); d) AIDS Related Complex (ARC); e) Human Immunodeficiency Virus (HIV); or any resulting symptom, effect, condition, disease or illness related to a) through e) listed above. In addition, bodily injury does not include any symptom, effect, condition, disease or illness resulting in any manner from: a) lead in any form; b) asbestos in any form; c) radon in any form; or d) oil, fuel oil, kerosene, liquid propane or gasoline intended for, or from, a storage tank located at the residence premises. 2. Building structure means a structure with walls and a roof. 3. Business means: a) any full- or part-time activity of any kind engaged in for economic gain including the use of any part of any premises for such purposes. The providing of home day care services to other than an insured person or relative of an insured person for economic gain is also a business. However, the mutual exchange of home day care services is not considered a business; b) the rental or holding for rental of property by an insured person. Rental of your residence premises is not considered a business when: 1) it is rented occasionally for residential purposes; 2) a portion is rented to roomers or boarders, provided not more than two roomers or boarders reside on the residence premises at any one time; or 3) a portion is rented as a private garage. 4. Dwelling means the single-family building structure, identified as the insured property on the Policy Declarations, where you reside and which is principally used as a private residence. 5. Insured person(s) means you and, if a resident of your household: a) any relative; and b) any person under the age of 21 in your care. Under Family Liability Protection Coverage X and Guest Medical Protection Coverage Y, insured person also means: a) any person or organization legally responsible for loss caused by animals or watercraft covered by this policy which are owned by an insured person. We do not cover any person or organization using or having custody of animals or watercraft in any business, or without permission of the owner. b) with respect to the use of any vehicle covered by this policy, any person while engaged in the employment of an insured person. 6. Insured premises means: a) the residence premises; and b) under Section II only: 1) the part of any other premises, other structures and grounds used by you as a residence. This includes premises, structures and grounds you acquire for your use as a private residence while this policy is in effect; 2) any part of a premises not owned by an insured person but where an insured person is temporarily living; 3) cemetery plots or burial vaults owned by an insured person; 4) land owned by or rented to an insured person where a single-family dwelling is being built as that person's residence; 5) any premises used by an insured person in connection with the residence premises; and 6) any part of a premises occasionally rented to an insured person for other than business purposes. 7. Occurrence means an accident, including continuous or repeated exposure to substantially the same general N N CW

5 Page 5 of 29 harmful conditions during the policy period, resulting in bodily injury or property damage. 8. Property damage means physical injury to or destruction of tangible property, including loss of its use resulting from such physical injury or destruction. 9. Residence employee means an employee of an insured person while performing duties arising out of and in the course of employment in connection with the maintenance or use of your residence premises. This includes similar duties performed elsewhere for an insured person, not in connection with the business of an insured person. 10. Residence premises means the dwelling, other structures and land located at the address stated on the Policy Declarations. 11. Roof surface means the roof surface material type (slate, composition, wood, tile, metal, all other roof surface material types) of a building structure or other structure covered under Dwelling Protection Coverage A or Other Structures Protection Coverage B and all other roofing components, including, but not limited to: a) flashing, caps, vents, drip edges, and ice shields; b) sheeting, felt and membranes; c) modified bitumen, bitumen, rubber, built-up and sprayed polyurethane foam roofing; d) foam inserts and elastomeric coating; e) finials, eave and gable trim and snow guards; f) battens, counter battens, bird stops, gravel stops; and g) coatings, adhesives, adherents and other finishing materials for roof surface materials and all other roofing components. 12. We, us, or our means the company named on the Policy Declarations. 13. Windstorm means wind with or without precipitation. 14. You or your means the person listed under Named Insured(s) on the Policy Declarations as the insured and that person's resident spouse. Insuring Agreement In reliance on the information you have given us, we agree to provide the coverages indicated on the Policy Declarations. In return, you must pay the premium when due and comply with the policy terms and conditions, and inform us of any change in title, use or occupancy of the residence premises. Subject to the terms of this policy, the Policy Declarations shows the location of the residence premises, applicable coverages, limits of liability and premiums. The policy applies only to losses or occurrences that take place during the policy period. The Policy Period is shown on the Policy Declarations. This policy is not complete without the Policy Declarations. This policy imposes joint obligations on the Named Insured(s) listed on the Policy Declarations and on that person's resident spouse. These persons are defined as you or your. This means that the responsibilities, acts and omissions of a person defined as you or your will be binding upon any other person defined as you or your. This policy imposes joint obligations on persons defined as an insured person. This means that the responsibilities, acts and failures to act of a person defined as an insured person will be binding upon another person defined as an insured person. Conformity To State Statutes When the policy provisions conflict with the statutes of the state in which the residence premises is located, the provisions are amended to conform to such statutes. Coverage Changes When we broaden coverage during the policy period without charge, you have the new features if you have the coverage to which they apply. Otherwise, the policy can be changed only by endorsement. The coverage provided and the premium for the policy are based on information you have given us. You agree to cooperate with us in determining if this information is correct and complete. You agree that if this information changes, or if this information is incorrect or incomplete, we may adjust your coverage and premium accordingly during the policy period. Any calculation of your premium or changes in your coverage will be made using the rules, rates and forms on file, if required, for our use in your state. The rates in effect at the beginning of your current policy period will be used to calculate any change in your premium.

6 Page 6 of 29 Policy Transfer You may not transfer this policy to another person without our written consent. Continued Coverage After Your Death If you die, coverage will continue until the end of the current policy period for: 1. your legal representative while acting as such, but only with respect to the residence premises and property covered under this policy on the date of your death. 2. an insured person, and any person having proper temporary custody of your property until a legal representative is appointed and qualified. Cancellation Your Right to Cancel: You may cancel this policy by notifying us of the future date you wish to stop coverage. Our Right to Cancel: We may cancel this policy by mailing notice to you at the mailing address shown on the Policy Declarations. When this policy has been in effect for less than 60 days, and it is not a renewal with us, we may cancel this policy for any reason by giving you at least 10 days notice before the cancellation takes effect. When the policy has been in effect for 60 days or more, or if it is a renewal with us, we may cancel this policy for one or more of the following reasons: 1. nonpayment of premium; 2. the policy was obtained by misrepresentation, fraud or concealment of material facts; 3. material misrepresentation, fraud or concealment of material facts in presenting a claim, or violation of any of the policy terms; or 4. there has been a substantial change or increase in hazard in the risk we originally accepted. If the cancellation is for nonpayment of premium, we will give you at least 10 days notice. If the cancellation is for any of the other reasons, we will give you at least 30 days notice. Our mailing the notice of cancellation to you will be deemed proof of notice. Coverage under this policy will terminate on the effective date and hour stated on the cancellation notice. Your return premium, if any, will be calculated on a pro rata basis and refunded at the time of cancellation or as soon as possible. However, refund of unearned premium is not a condition of cancellation. Our Right Not to Renew or Continue: We have the right not to renew or continue the policy beyond the current policy period. If we do not intend to continue or renew the policy, we will mail you notice at least 30 days before the end of the policy period. Our mailing the notice of nonrenewal to you will be deemed proof of notice. Misrepresentation, Fraud Or Concealment We may void this policy if it was obtained by misrepresentation, fraud or concealment of material facts. If we determine that this policy is void, all premiums paid will be returned to you since there has been no coverage under this policy. We do not cover any loss or occurrence in which any insured person has concealed or misrepresented any material fact or circumstance. What Law Will Apply This policy is issued in accordance with the laws of the state in which the residence premises is located and covers property or risks principally located in that state. Subject to the following paragraph, the laws of the state in which the residence premises is located shall govern any and all claims or disputes in any way related to this policy. If a covered loss to property, or any other occurrence for which coverage applies under this policy, happens outside the state in which the residence premises is located, claims or disputes regarding that covered loss to property, or other covered occurrence, may be governed by the laws of the jurisdiction in which that covered loss to property or other covered occurrence happened, only if the laws of that jurisdiction would apply in the absence of a contractual choice of law provision such as this. Where Lawsuits May Be Brought Subject to the following two paragraphs, any and all lawsuits in any way related to this policy, shall be brought, heard and decided only in a state or federal court located in the state in which the residence premises is located. Any and all lawsuits against persons not parties to this policy but involved in the sale, administration, performance, or alleged breach of this policy, or otherwise related to this policy, shall be brought, heard and decided only in a state or federal court located N N CW

7 Page 7 of 29 in the state in which the residence premises is located, provided that such persons are subject to or consent to suit in the courts specified in this paragraph. If a covered loss to property, or any other occurrence for which coverage applies under this policy, happens outside the state in which the residence premises is located, lawsuits regarding that covered loss to property, or other covered occurrence, may also be brought in the judicial district where that covered loss to property or other covered occurrence happened. Nothing in this provision, Where Lawsuits May Be Brought, shall impair any party s right to remove a state court lawsuit to a federal court. Action Against Us No one may bring an action against us unless there has been full compliance with all policy terms. Any action against us to which neither the Action Against Us provision located in Section I Conditions nor the Action Against Us provision located in Section II Conditions applies must be commenced within one year of the date the cause of action accrues. If an action is brought asserting claims relating to the existence or amount of coverage, or the amount of loss for which coverage is sought, under different coverages of this policy, the claims relating to each coverage shall be treated as if they were separate actions for the purpose of the time limit to commence action. Arbitration Any claim or dispute in any way related to this policy, by an insured person against us or us against an insured person, may be resolved by arbitration only upon mutual consent of the parties. Arbitration pursuant to this provision shall be subject to the following: 1. no arbitrator shall have the authority to award punitive damages or attorney s fees; 2. neither of the parties shall be entitled to arbitrate any claims or disputes in a representative capacity or as a member of a class; and 3. no arbitrator shall have the authority, without the mutual consent of the parties, to consolidate claims or disputes in arbitration. Section I Your Property Dwelling Protection Coverage A Property We Cover Under Coverage A: 1. Your dwelling, including attached structures. Structures connected to your dwelling by only a fence, utility line, or similar connection are not considered attached structures. 2. Construction materials and supplies at the residence premises for use in connection with your dwelling. 3. Wall-to-wall carpeting fastened to your dwelling. Property We Do Not Cover Under Coverage A: 1. Any structure, including fences, or other property covered under Other Structures Protection Coverage B. 2. Land. 3. Satellite dish antennas and their systems, whether or not attached to your dwelling. Other Structures Protection Coverage B Property We Cover Under Coverage B: 1. Structures at the address shown on the Policy Declarations separated from your dwelling by clear space. 2. Structures at the address shown on the Policy Declarations connected to your dwelling by only a fence, utility line, or similar connection. 3. Construction materials and supplies at the residence premises for use in connection with structures other than your dwelling. 4. Wall-to-wall carpeting fastened to building structures, other than your dwelling, at the address shown on the Policy Declarations. Property We Do Not Cover Under Coverage B: 1. Structures used in whole or in part for business purposes. 2. Any structure or other property covered under Dwelling Protection Coverage A.

8 Page 8 of Land. 4. Construction materials and supplies at the residence premises for use in connection with the dwelling. 5. Satellite dish antennas and their systems, whether or not attached to building structures. Losses We Cover Under Coverages A and B: We will cover sudden and accidental direct physical loss to property described in Dwelling Protection Coverage A and Other Structures Protection Coverage B except as limited or excluded in this policy. Losses We Do Not Cover Under Coverages A and B: A. Under Dwelling Protection Coverage A and Other Structures Protection Coverage B of this policy, we do not cover any loss which consists of, is caused by, or would not have occurred but for, one or more of the following excluded events, perils or conditions. Such loss is excluded regardless of: a) the cause or source of the excluded event, peril or condition; b) any other causes contributing concurrently or in any sequence with the excluded event, peril or condition to produce the loss; or c) whether the excluded event, peril or condition involves isolated or widespread damage, arises from natural, man-made or other forces, or arises as a result of any combination of these forces. 1. Flood, including, but not limited to, surface water, waves, tidal water or overflow of any body of water, or spray from any of these, whether or not driven by wind. 2. Water or any other substance that backs up through sewers or drains. 3. Water or any other substance that overflows from a sump pump, sump pump well or other system designed for the removal of subsurface water which is drained from a foundation area of a structure. 4. Water or any other substance on or below the surface of the ground. This includes water or any other substance which exerts pressure on, or flows, seeps or leaks through any part of the residence premises. We do cover sudden and accidental direct physical loss caused by fire or explosion resulting from items 1 through 4 listed above. 5. Earth movement of any type, including, but not limited to, earthquake, volcanic eruption, lava flow, landslide, subsidence, mudflow, pressure, sinkhole, erosion, or the sinking, rising, shifting, creeping, expanding, bulging, cracking, settling or contracting of the earth. This exclusion applies whether or not the earth movement is combined with water. We do cover sudden and accidental direct physical loss caused by fire or explosion resulting from earth movement. 6. Actions taken by civil, governmental or military authorities: a) to enforce any building codes, ordinances or laws regulating or requiring the construction, reconstruction, maintenance, replacement, repair, placement or demolition of any building structure, other structure or land at the residence premises; or b) requesting, demanding or ordering that an insured person test for, monitor, clean up, remove, contain, treat, detoxify, decontaminate, or neutralize, or in any way respond to or assess the effects of, any loss or potential loss at the residence premises. However, we will cover sudden and accidental direct physical loss caused by actions of civil, governmental or military authority to prevent the spread of fire. 7. Nuclear hazard, meaning nuclear reaction, discharge, radiation or radioactive contamination, or any consequence of any of these. Loss which consists of, is caused by, or would not have occurred but for, the nuclear hazard is not considered loss by fire, explosion or smoke. 8. a) War, whether declared or undeclared; b) warlike acts; c) invasion; d) insurrection; e) rebellion; f) revolution; g) civil war; h) usurped power; N N CW

9 Page 9 of 29 i) destruction for a military purpose; or j) action taken by civil, governmental or military authority to hinder or defend against an actual or impending enemy act. 9. Soil conditions, including, but not limited to, corrosive action, chemicals, compounds, elements, suspensions, crystal formations or gels in the soil. 10. Vapors, fumes, smoke, smog, soot, alkalis, acids, toxic chemicals, toxic gasses, toxic liquids, toxic solids, waste materials, or other irritants, contaminants or pollutants. However, we will not apply this exclusion to sudden and accidental direct physical loss which consists of, is caused by, or would not have occurred but for: a) a fire or an explosion at your residence premises; b) smoke or soot resulting from food preparation at your residence premises; c) the malfunction of a heating or air conditioning system or a household appliance at your residence premises; d) smoke, soot or fumes originating away from your residence premises, provided the smoke, soot or fumes: 1) were not from industrial, governmental or military operations, agricultural smudging, or the manufacturing of any controlled substance; and 2) did not result from nuclear hazard, meaning nuclear reaction, discharge, radiation or radioactive contamination, or any consequence of any of these; e) spray, overspray, spatter, or spillage, by a person located on the ground at the residence premises or in or upon a structure we cover at the residence premises, of lawfully possessed, commercially available supplies manufactured or produced for use in food preparation, personal hygiene, or for cleaning or maintaining a residential property or personal property; f) spray, overspray, spatter or spillage of lawfully possessed, commercially available supplies by a person performing cleaning or other maintenance services at a premises located within 500 feet of the residence premises; g) spillage or release at your residence premises of gas or oil, in any form, used to prepare foods at your residence premises, or to heat the dwelling or other building structures at your residence premises, when such spillage or release results in a fire or an explosion at your residence premises; or h) fuel, oil or other fluids necessary to operate a motorized land vehicle if, at the time of the loss, such fuel, oil or other fluids are being used solely for the purpose of operating a motorized land vehicle and the loss results from a collision, at the residence premises, of the motorized land vehicle with property we cover under Dwelling Protection Coverage A or Other Structures Protection Coverage B. 11. Lack of utility services at the residence premises, meaning loss or interruption of, lack or loss of access to, or unavailability of, one or more utility services for the residence premises, including, but not limited to, electric, natural gas or other fuels, water, sanitation, sewer, cable or communication services, unless the lack of utility services results solely from a sudden and accidental direct physical loss to property located at the residence premises caused by an event, peril or condition not excluded by this policy. When the lack of utility services results in freezing of: a) plumbing, automatic fire protective sprinkler systems, heating or air conditioning systems; b) household appliances; or c) swimming pools, hot tubs or spas located within a heated portion of the dwelling, or their filtration and circulation systems located within a heated portion of the dwelling; or when the lack of utility services results in discharge, leakage or overflow from within a), b) or c) above caused by freezing, we do cover sudden and accidental direct physical loss caused by the freezing if you used reasonable care to maintain heat in the building structure. If the building structure is not equipped with an automatic fire protective sprinkler system, you may elect to shut off the water supply and drain the water from the systems, appliances, swimming pools, hot tubs, spas and their filtration and circulation systems instead of maintaining heat in the building structure. 12. Inability of an insured person to use, access or remain at the residence premises due to an actual,

10 Page 10 of 29 impending or expected lack, impassability or unavailability of any reasonable means of ingress to or egress from the residence premises, including, but not limited to, roads, highways, causeways, sidewalks, paths, rails, bridges, tunnels or waterways. For purposes of this exclusion, a particular means of ingress or egress will be considered impassable or unavailable if: a) it cannot be safely traveled due to physical damage or destruction of that means of ingress or egress; or b) it cannot be traveled due to actions by others, including, but not limited to, civil, governmental or military authorities which prohibit or restrict travel using that means of ingress or egress. 13. Seizure, confiscation or quarantine by civil, governmental or military authority. We will cover sudden and accidental direct physical loss caused by actions of civil, governmental or military authority to prevent the spread of fire. 14. The manufacturing of any controlled substance. 15. Weather Conditions that contribute in any way with an event, peril or condition excluded under Losses We Do Not Cover Under Coverages A and B to produce a loss. B. Under Dwelling Protection Coverage A and Other Structures Protection Coverage B of this policy, we do not cover any loss consisting of or caused by mold, fungus, wet rot, dry rot or bacteria. This includes any loss which, in whole or in part, arises out of, is aggravated by or results from mold, fungus, wet rot, dry rot or bacteria. This exclusion applies regardless of whether mold, fungus, wet rot, dry rot or bacteria arises from any other cause of loss, including, but not limited to, a loss involving water, water damage or discharge, which may otherwise be covered by this policy, except as specifically provided in Section I Conditions, Mold, Fungus, Wet Rot And Dry Rot Remediation As A Direct Result Of A Covered Water Loss. C. When loss is not excluded under paragraph A or paragraph B of Losses We Do Not Cover Under Coverages A and B, and there are two or more causes of loss to the covered property, we do not cover the loss if the predominant cause(s) of loss is (are) excluded under paragraph D, immediately below. D. Under Dwelling Protection Coverage A and Other Structures Protection Coverage B of this policy, we do not cover any loss consisting of or caused by one or more of the following excluded events, perils or conditions. Such loss is excluded regardless of whether the excluded event, peril or condition involves isolated or widespread damage, arises from natural, man-made or other forces, or arises as a result of any combination of these forces. 1. The failure by any insured person to take all reasonable steps to save and preserve property when the property is endangered by a cause of loss we cover. 2. Any substantial change or increase in hazard, if changed or increased by any means within the control or knowledge of an insured person. 3. Intentional or criminal acts of or at the direction of any insured person, if the loss that occurs: a) may be reasonably expected to result from such acts; or b) is the intended result of such acts. This exclusion applies regardless of whether the insured person is actually charged with, or convicted of, a crime. 4. Collapse, except as specifically provided in Section I Additional Protection under item 10, Collapse. 5. a) Wear and tear, aging, marring, scratching, deterioration, inherent vice, or latent defect; b) mechanical breakdown; c) growth of trees, shrubs, plants or lawns, regardless of whether such growth is above or below the surface of the ground; d) rust or other corrosion; e) settling, cracking, shrinking, bulging or expansion of pavements, patios, foundations, walls, floors, roofs or ceilings; or f) insects, rodents, birds or domestic animals. We do cover the breakage of glass or safety glazing materials caused by birds. If any of a) through f) causes the sudden and accidental escape of water or steam from a plumbing, heating or air conditioning system, N N CW

11 Page 11 of 29 a household appliance or an automatic fire protective sprinkler system within your dwelling, we cover the direct physical damage caused by the water or steam. If loss to covered property is caused by water or steam not otherwise excluded, we will cover the cost of tearing out and replacing any part of your dwelling necessary to repair the system or appliance. This does not include damage to the defective system or appliance from which the water or steam escaped. 6. Freezing of: a) plumbing, automatic fire protective sprinkler systems, heating or air conditioning systems; b) household appliances; or c) swimming pools, hot tubs or spas located within a heated portion of the dwelling, or their filtration and circulation systems located within a heated portion of the dwelling; or discharge, leakage or overflow from within a), b) or c) above, caused by freezing, while the building structure is vacant, unoccupied or being constructed, unless you have used reasonable care to maintain heat in the building structure. If the building structure is not equipped with an automatic fire protective sprinkler system, you may elect to shut off the water supply and drain the water from the systems, appliances, swimming pools, hot tubs, spas and their filtration and circulation systems instead of maintaining heat in the building structure. 7. Freezing, thawing, pressure or weight of water, snow or ice, whether or not driven by wind. This exclusion applies to fences, pavements, patios, foundations, retaining walls, bulkheads, piers, wharves and docks. This exclusion also applies to swimming pools, hot tubs, spas, and their filtration and circulation systems, which are not located within a heated portion of the dwelling. 8. Seepage, meaning continuous or repeated seepage or leakage over a period of weeks, months, or years, of water, steam or fuel: a) from a plumbing, heating, air conditioning or automatic fire protective sprinkler system or from within a domestic appliance; or b) from, within or around any plumbing fixtures, including, but not limited to, shower stalls, shower baths, tub installations, sinks or other fixtures designed for the use of water or steam. 9. Theft from your residence premises while your dwelling is under construction, or of materials and supplies for use in construction, until your dwelling is completed and occupied. 10. Vandalism or malicious mischief if your dwelling is vacant or unoccupied for more than 30 consecutive days immediately prior to the vandalism or malicious mischief. A dwelling under construction is not considered vacant or unoccupied. 11. Planning, Construction or Maintenance, meaning faulty, inadequate or defective: a) planning, zoning, development, surveying, siting; b) design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction; c) materials used in repair, construction, renovation or remodeling; or d) maintenance; of property whether on or off the residence premises by any person or organization. Personal Property Protection Coverage C Property We Cover Under Coverage C: 1. Personal property owned or used by an insured person anywhere in the world. When personal property is located away from the residence premises, coverage is limited to 10% of Personal Property Protection Coverage C. 2. At your option, personal property owned by a guest or residence employee while the property is in a residence you are occupying. Limitations On Certain Personal Property: Limitations apply to the following groups of personal property. If personal property can reasonably be considered a part of two or more of the groups listed below, the lowest limit will apply. These limitations do not increase the amount of insurance under Personal Property Protection Coverage C. The total amount of coverage for each group in any one loss is as follows: 1. $ 200 Property used or intended for use in a business while the property is away from the residence premises. This does not

12 Page 12 of 29 include electronic data processing equipment or the recording or storage media used with that equipment. 2. $ 500 Theft of any recording or storage media while such property is away from the residence premises, whether or not it is used with electronic data processing equipment or in a business. Recording or storage media includes, but is not limited to: a) tapes; b) CDs, DVDs and other discs; c) records; d) disks; e) reels; f) cassettes; g) cartridges; or h) programs. 3. $ 1,000 Property used or intended for use in a business, including property held as samples or for sale or delivery after sale, while the property is on the residence premises. This does not include electronic data processing equipment or the recording or storage media used with that equipment. 4. $ 1,000 Trading cards, subject to a maximum amount of $250 per card. 5. $ 1,000 Watercraft, including their attached or unattached trailers, furnishings, equipment, parts, and motors. 6. $ 1,000 Trailers not used with watercraft. 7. $ 1,500 Motorized land vehicle parts, equipment or accessories not attached to or located in or upon any motorized land vehicle. 8. $ 2,000 Theft of firearms, their related equipment, and accessories. 9. $ 2,500 Theft of goldware, silverware, pewterware and platinumware. 10. $ 5,000 Theft of jewelry, watches, precious and semi-precious stones, gold other than goldware, silver other than silverware, pewter other than pewterware, platinum other than platinumware, and furs, including any item containing fur which represents its principal value, subject to a maximum amount of $1,000 per item. 11. $10,000 Theft of tools and their accessories. 12. $10,000 Motorized land vehicles used solely for the service of the insured premises and not licensed for use on public roads. This does not include motorized land vehicles designed for assisting the disabled and not licensed for use on public roads. Property We Do Not Cover Under Coverage C: 1. Personal property specifically described and insured by this or any other insurance. 2. Animals. 3. Motorized land vehicles, including, but not limited to, any land vehicle powered or assisted by a motor or engine. We do not cover any motorized land vehicle parts, equipment or accessories attached to or located in or upon any motorized land vehicle. We do cover motorized land vehicles designed for assisting the disabled, or used solely for the service of the insured premises, and not licensed for use on public roads. 4. Aircraft and aircraft parts. This does not include model or hobby craft not designed to carry people or cargo. 5. Property of roomers, boarders or tenants not related to you. 6. Property located away from the residence premises and rented or held for rental to others. 7. Satellite dish antennas and their systems. 8. Money, bullion, bank notes, coins and other numismatic property, scrip, stored value cards, and smart cards. 9. Accounts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, checks, cashier s checks, traveler s checks, passports, securities, tickets, and stamps, including philatelic property. 10. Manuscripts, including documents stored on electronic media N N CW

13 Page 13 of 29 Losses We Cover Under Coverage C: We will cover sudden and accidental direct physical loss to the property described in Personal Property Protection Coverage C caused by the following, except as limited or excluded in this policy: 1. Fire or lightning. 2. Windstorm or hail. We do not cover: a) loss to covered property inside a building structure, caused by rain, snow, sleet, sand or dust unless the wind or hail first damages the roof or walls and the wind forces rain, snow, sleet, sand or dust through the damaged roof or wall; b) loss to watercraft and their trailers, furnishings, equipment and motors unless inside a fully enclosed building structure. However, we do cover canoes and rowboats on the residence premises. 3. Explosion. 4. Riot or civil commotion, including pillage and looting during, and at the site of, the riot or civil commotion. 5. Aircraft, including self-propelled missiles and spacecraft. 6. Vehicles. 7. Smoke. 8. Vandalism and malicious mischief. We do not cover vandalism or malicious mischief if your dwelling has been vacant or unoccupied for more than 30 consecutive days immediately prior to the vandalism or malicious mischief. A dwelling under construction is not considered vacant or unoccupied. 9. Falling objects. We do not cover loss to personal property inside a building structure unless the falling object first damages the exterior walls or roof of the building structure. 10. Weight of ice, snow or sleet which causes damage to personal property in a building structure, but only if the building structure is damaged due to the weight of ice, snow or sleet. 11. Artificially generated electrical current to electronics, electrical appliances, fixtures and wiring. 12. Bulging, burning, cracking or rupture of a steam or hot water heating system, an air conditioning system, an automatic fire protective sprinkler system or an appliance for heating water. 13. Water or steam that escapes from a plumbing, heating or air conditioning system, an automatic fire protective sprinkler system, or from a household appliance due to accidental discharge or overflow. We do not cover loss to the system or appliance from which the water or steam escapes, or loss from water which backs up through sewers or drains or overflows from a sump pump, sump pump well or other system designed for the removal of subsurface water which is drained from a foundation area of a structure. 14. Freezing of a plumbing, heating or air conditioning system, an automatic fire protective sprinkler system or a household appliance. We do not cover loss at the residence premises under items 12, 13, and 14, immediately above, which is caused by freezing while the building structure is vacant, unoccupied or under construction, or when freezing results from a lack of utility services at the residence premises to which item A.10 in Losses We Do Not Cover Under Coverage C applies, unless you have used reasonable care to maintain heat in the building structure. If the building structure is not equipped with an automatic fire protective sprinkler system, you may elect to shut off the water supply and drain the water from the systems and appliances instead of maintaining heat in the building structure. 15. Theft, or attempted theft, including disappearance of property from a known place when it is likely that a theft has occurred. Any theft must be promptly reported to the police. We do not cover: a) theft or attempted theft committed by an insured person; b) theft in or from the residence premises while under construction or of materials and supplies for use in construction, until the dwelling is completed and occupied;

14 Page 14 of 29 c) theft of any property while at any other residence owned, rented to or occupied by an insured person unless the insured person is temporarily residing there; d) theft of trailers, campers, watercraft, including furnishings, equipment and outboard motors, away from the residence premises; or e) theft from that part of the residence premises rented by you to other than an insured person. 16. Breakage of glass, meaning damage to covered personal property caused by breakage of glass constituting a part of any building structure on the residence premises. This does not include damage to the glass. Losses We Do Not Cover Under Coverage C: A. Under Personal Property Protection Coverage C of this policy, we do not cover any loss which consists of, is caused by, or would not have occurred but for, one or more of the following excluded events, perils or conditions. Such loss is excluded regardless of: a) the cause or source of the excluded event, peril or condition; b) any other causes contributing concurrently or in any sequence with the excluded event, peril or condition to produce the loss; or c) whether the excluded event, peril or condition involves isolated or widespread damage, arises from natural, man-made or other forces, or arises as a result of any combination of these forces. 1. Flood, including, but not limited to, surface water, waves, tidal water or overflow of any body of water, or spray from any of these, whether or not driven by wind. 2. Water or any other substance that backs up through sewers or drains. 3. Water or any other substance that overflows from a sump pump, sump pump well or other system designed for the removal of subsurface water which is drained from a foundation area of a structure. 4. Water or any other substance on or below the surface of the ground. This includes water or any other substance which exerts pressure on, or flows, seeps or leaks through any part of the residence premises. We do cover sudden and accidental direct physical loss caused by fire or explosion resulting from items 1 through 4 listed above. 5. Earth movement of any type, including, but not limited to, earthquake, volcanic eruption, lava flow, landslide, subsidence, mudflow, pressure, sinkhole, erosion, or the sinking, rising, shifting, creeping, expanding, bulging, cracking, settling or contracting of the earth. This exclusion applies whether or not the earth movement is combined with water. We do cover sudden and accidental direct physical loss caused by fire or explosion resulting from earth movement. 6. Actions taken by civil, governmental or military authorities: a) to enforce any building codes, ordinances or laws regulating or requiring the construction, reconstruction, maintenance, replacement, repair, placement or demolition of any building structure, other structure or land at the residence premises; or b) requesting, demanding or ordering that an insured person test for, monitor, clean up, remove, contain, treat, detoxify, decontaminate, or neutralize, or in any way respond to or assess the effects of, any loss or potential loss at the residence premises. However, we will cover sudden and accidental direct physical loss caused by actions of civil, governmental or military authority to prevent the spread of fire. 7. Nuclear hazard, meaning nuclear reaction, discharge, radiation or radioactive contamination, or any consequence of any of these. Loss which consists of, is caused by, or would not have occurred but for, the nuclear hazard is not considered loss by fire, explosion or smoke. 8. a) War, whether declared or undeclared; b) warlike acts; c) invasion; d) insurrection; e) rebellion; f) revolution; g) civil war; h) usurped power; i) destruction for a military purpose; or j) action taken by civil, governmental or military authority to hinder or defend against an actual or impending enemy act N N CW

15 Page 15 of Vapors, fumes, smoke, smog, soot, alkalis, acids, toxic chemicals, toxic gasses, toxic liquids, toxic solids, waste materials, or other irritants, contaminants or pollutants. However, we will not apply this exclusion to sudden and accidental direct physical loss which consists of, is caused by, or would not have occurred but for: a) a fire or an explosion at your residence premises; b) smoke or soot resulting from food preparation at your residence premises; c) the malfunction of a heating or air conditioning system or a household appliance at your residence premises; d) smoke, soot or fumes originating away from your residence premises, provided the smoke, soot or fumes: 1) were not from industrial, governmental or military operations, agricultural smudging, or the manufacturing of any controlled substance; and 2) did not result from nuclear hazard, meaning nuclear reaction, discharge, radiation or radioactive contamination, or any consequence of any of these; e) spray, overspray, spatter, or spillage, by a person located on the ground at the residence premises or in or upon a structure we cover at the residence premises, of lawfully possessed, commercially available supplies manufactured or produced for use in food preparation, personal hygiene, or for cleaning or maintaining a residential property or personal property; f) spillage or release at your residence premises of gas or oil, in any form, used to prepare foods at your residence premises, or to heat the dwelling or other building structures at your residence premises, when such spillage or release results in a fire or an explosion at your residence premises; or g) fuel, oil or other fluids necessary to operate a motorized land vehicle if, at the time of the loss, such fuel, oil or other fluids are being used solely for the purpose of operating a motorized land vehicle and the loss results from a collision, at the residence premises, of the motorized land vehicle with property we cover under Dwelling Protection Coverage A or Other Structures Protection Coverage B. 10. Lack of utility services at the residence premises, meaning loss or interruption of, lack or loss of access to, or unavailability of, one or more utility services for the residence premises, including, but not limited to, electric, natural gas or other fuels, water, sanitation, sewer, cable or communication services, unless the lack of utility services results solely from a sudden and accidental direct physical loss to property located at the residence premises caused by an event, peril or condition not excluded by this policy. When the lack of utility services results in freezing of: a) plumbing, automatic fire protective sprinkler system, heating or air conditioning systems; or b) household appliances; or when the lack of utility services results in discharge, leakage or overflow from within a) or b) above caused by freezing, we do cover sudden and accidental direct physical loss caused by the freezing if you used reasonable care to maintain heat in the building structure. If the building structure is not equipped with an automatic fire protective sprinkler system, you may elect to shut off the water supply and drain the water from the systems and appliances instead of maintaining heat in the building structure. 11. Inability of an insured person to use, access or retain personal property we cover under Personal Property Protection Coverage C due to an actual, impending or expected lack, impassability or unavailability of any reasonable means of ingress to or egress from the residence premises or any other location where the property is located, including, but not limited to, roads, highways, causeways, sidewalks, paths, rails, bridges, tunnels or waterways. For purposes of this exclusion, a particular means of ingress or egress will be considered impassable or unavailable if: a) it cannot be safely traveled due to physical damage or destruction of that means of ingress or egress; or b) it cannot be traveled due to actions by others, including, but not limited to, civil, governmental or military authorities which prohibit or restrict travel using that means of ingress or egress.

16 Page 16 of Weather Conditions that contribute in any way with an event, peril or condition excluded under Losses We Do Not Cover Under Coverage C to produce a loss. B. Under Personal Property Protection Coverage C of this policy, we do not cover any loss consisting of or caused by mold, fungus, wet rot, dry rot or bacteria. This includes any loss which, in whole or in part, arises out of, is aggravated by or results from mold, fungus, wet rot, dry rot or bacteria. This exclusion applies regardless of whether mold, fungus, wet rot, dry rot or bacteria arises from any other cause of loss, including, but not limited to, a loss involving water, water damage or discharge, which may otherwise be covered by this policy, except as specifically provided in Section I Conditions, Mold, Fungus, Wet Rot And Dry Rot Remediation As A Direct Result Of A Covered Water Loss. C. When loss is not excluded under paragraph A or paragraph B of Losses We Do Not Cover Under Coverage C, and there are two or more causes of loss to the covered property, we do not cover the loss if the predominant cause(s) of loss is (are) excluded under paragraph D, immediately below. D. Under Personal Property Protection Coverage C of this policy, we do not cover any loss consisting of or caused by one or more of the following excluded events, perils or conditions. Such loss is excluded regardless of whether the excluded event, peril or condition involves isolated or widespread damage, arises from natural, man-made or other forces, or arises as a result of any combination of these forces. 1. The failure by any insured person to take all reasonable steps to save and preserve property when the property is endangered by a cause of loss we cover. 2. Any substantial change or increase in hazard, if changed or increased by any means within the control or knowledge of an insured person. 3. Intentional or criminal acts of or at the direction of any insured person, if the loss that occurs: a) may be reasonably expected to result from such acts; or b) is the intended result of such acts. This exclusion applies regardless of whether the insured person is actually charged with, or convicted of, a crime. 4. Planning, Construction or Maintenance, meaning faulty, inadequate or defective: a) planning, zoning, development, surveying, siting; b) design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction; c) materials used in repair, construction, renovation or remodeling; or d) maintenance; of property whether on or off the residence premises by any person or organization. Section I Additional Protection 1. Additional Living Expense We will pay the reasonable increase in living expenses necessary to maintain your normal standard of living when a direct physical loss we cover under Dwelling Protection Coverage A, Other Structures Protection Coverage B or Personal Property Protection Coverage C makes your residence premises uninhabitable. However, additional living expense due to remediation of mold, fungus, wet rot or dry rot will not be paid in addition to any amounts paid or payable under Section I Conditions, Mold, Fungus, Wet Rot And Dry Rot Remediation As A Direct Result Of A Covered Water Loss. Payment for additional living expense as a result of a covered loss under Dwelling Protection Coverage A, Other Structures Protection Coverage B or Personal Property Protection Coverage C will be limited to the least of the following: a) the time period required to repair or replace the property we cover, using due diligence and dispatch; b) if you permanently relocate, the shortest time for your household to settle elsewhere; or c) 12 months. These periods of time are not limited by the termination of this policy. In no event shall our payment for additional living expenses exceed the Limit Of Liability shown on your Policy Declarations for Additional Living Expense. We do not cover any lost income or expense due to the cancellation of a lease or agreement N N CW

17 Page 17 of 29 No deductible applies to this protection. 2. Civil, Governmental And Military Authorities We will pay the reasonable and necessary increase in living expenses for up to two weeks should civil, governmental or military authorities prohibit the use of the residence premises due to a loss at a neighboring premises caused by an event, peril or condition we insure against under Dwelling Protection Coverage A, Other Structures Protection Coverage B or Personal Property Protection Coverage C. However, payments for increase in living expenses due to remediation of mold, fungus, wet rot or dry rot will not be paid in addition to any amounts paid or payable under Section I Conditions, Mold, Fungus, Wet Rot And Dry Rot Remediation As A Direct Result Of A Covered Water Loss. The two-week period of time referenced above is not limited by the termination of this policy. No deductible applies to this protection. 3. Debris Removal We will pay reasonable expenses you incur to remove debris of covered property damaged by a loss we cover. If the loss to the covered property and the cost of debris removal are more than the Limit Of Liability shown on the Policy Declarations for the covered property, we will pay up to an additional 5% of that limit for debris removal. 4. Emergency Removal Of Property We will pay for sudden and accidental direct physical loss to covered property from any cause while removed from a premises because of danger from a loss we cover. Protection is limited to a 30-day period from date of removal. This protection does not increase the limit of liability that applies to the covered property. 5. Fire Department Charges We will pay up to $500 for service charges made by fire departments called to protect your property from a loss we cover at the residence premises. No deductible applies to this protection. 6. Temporary Repairs After A Loss We will reimburse you up to $5,000 for the reasonable and necessary cost you incur for temporary repairs to protect covered property from further imminent covered loss following a loss we cover. This coverage does not increase the limit of liability applying to the property being repaired. 7. Trees, Shrubs, Plants And Lawns We will pay up to 5% of the Limit Of Liability shown on the Policy Declarations under Dwelling Protection Coverage A for loss to trees, shrubs, plants and lawns at the address of the residence premises. We will not pay more than $500 for any one tree, shrub, or plant, including expenses incurred for removing debris. This coverage applies only to sudden and accidental direct physical loss caused by fire or lightning, explosion, riot or civil commotion, aircraft, vehicles not owned by an occupant of the residence premises, vandalism or malicious mischief, theft, or collapse of a building structure or any part of a building structure. We will pay up to $500 for reasonable expenses you incur for the removal of debris of trees at the address of the residence premises for sudden and accidental direct physical loss caused by windstorm, hail, or weight of ice, snow or sleet. The fallen tree must have caused damage to property covered under Dwelling Protection Coverage A or Other Structures Protection Coverage B. We do not cover trees, shrubs, plants, or lawns grown for business purposes. This coverage does not increase the Dwelling Protection Coverage A limit of liability. 8. Power Interruption We will pay up to $500 for loss to the contents of freezers and refrigerated units on the residence premises caused by the interruption of power which occurs off the residence premises. If a power interruption is known to an insured person, all reasonable means must be used to protect the contents of freezers and refrigerated units. This coverage does not increase the limit of liability applying to the damaged property. 9. Arson Reward We will pay up to $5,000 for information leading to an arson conviction in connection with a fire loss to property covered under Section I of this policy. The $5,000 limit applies regardless of the number of persons providing information.

18 Page 18 of Collapse We will cover at the residence premises: a) the entire collapse of a covered building structure; b) the entire collapse of part of a covered building structure; and c) direct physical loss to covered property caused by a) or b) above. For coverage to apply, the collapse of a building structure specified in a) or b) above must be a sudden and accidental direct physical loss caused by one or more of the following: a) a loss we cover under Section I, Personal Property Protection Coverage C; b) weight of persons, animals, equipment or contents; c) weight of rain, snow or ice which collects on a roof; d) defective methods or materials used in construction, repair, remodeling or renovation, but only if the collapse occurs in the course of such construction, repair, remodeling or renovation. Collapse, as referenced herein, means the covered building structure or part of the covered building structure has actually fallen down or fallen into pieces unexpectedly and instantaneously. It does not include settling, cracking, shrinking, bulging, expansion, sagging, or bowing. Furthermore, collapse does not include or mean substantial structural impairment or imminent collapse. Loss to an awning, fence, patio, deck, pavement, swimming pool, underground pipe, flue, drain, cesspool, fuel oil tank, septic tank, cistern or similar system, foundation, retaining wall, bulkhead, pier, wharf or dock is not included, unless the loss is a direct result of the collapse of a building structure or part of a building structure that is a sudden and accidental direct physical loss caused by one or more of the following: a) a loss we cover under Section I, Personal Property Protection Coverage C; b) weight of persons, animals, equipment or contents; c) weight of rain, snow or ice which collects on a roof; or d) defective methods or materials used in construction, repair, remodeling or renovation, but only if the collapse occurs in the course of such construction, repair, remodeling or renovation. This coverage does not increase the limit of liability applying to the covered property. 11. Land If a sudden and accidental direct physical loss results in both a covered loss to the dwelling, other than the breakage of glass or safety glazing material, and a loss of land stability, we will pay up to $10,000 as an additional amount of insurance for repair costs associated with the land. This includes the costs required to replace, rebuild, stabilize or otherwise restore the land necessary to support that part of the dwelling sustaining the covered loss. The Section I, Losses We Do Not Cover Under Coverages A and B reference to earth movement does not apply to the loss of land stability provided under this additional protection. 12. Lock Replacement When a key to a lock is stolen as part of a covered theft loss, we will pay, under Dwelling Protection Coverage A or Other Structures Protection Coverage B, as applicable, up to $500 for the reasonable expenses you incur to replace or re-key exterior door locks at the residence premises with locks or cylinders of like kind and quality. This coverage does not increase the limit of liability that applies to the covered property. Section I Conditions 1. Deductible We will pay when a covered loss exceeds the applicable deductible shown on the Policy Declarations. We will then pay only the excess amount, unless we have indicated otherwise in this policy. 2. Insurable Interest And Our Liability In the event of a covered loss, we will not pay for more than an insured person's insurable interest in the property covered, nor more than the amount of coverage afforded by this policy. 3. What You Must Do After A Loss In the event of a loss to any property that may be covered by this policy, you must: a) immediately give us or our agent notice. Report any theft to the police as soon as possible. b) protect the property from further loss. Make any reasonable repairs necessary to protect it. Keep an accurate record of any repair expenses N N CW

19 Page 19 of 29 c) separate damaged from undamaged personal property. Give us a detailed list of the damaged, destroyed or stolen property, showing the quantity, cost, actual cash value and the amount of loss claimed. d) give us all accounting records, bills, invoices and other vouchers, or certified copies, which we may reasonably request to examine and permit us to make copies. e) produce receipts for any increased costs to maintain your standard of living while you reside elsewhere, and records supporting any claim for loss of rental income. f) as often as we reasonably require: 1) show us the damaged property. We have a right to reasonable and safe opportunities to view and inspect the loss as often as necessary, unimpeded by actions of you or others, including, but not limited to, civil, governmental or military authorities, that prevent us from viewing and inspecting the loss. We may require you to accompany us when we conduct these activities. 2) at our request, submit to examinations under oath, separately and apart from any other person defined as you or insured person and sign a transcript of the same. 3) produce representatives, employees, members of the insured person's household or others to the extent it is within the insured person's power to do so; and g) within 60 days after the loss, give us a signed, sworn proof of the loss. This statement must include the following information: 1) the date, time, location and cause of loss; 2) the interest insured persons and others have in the property, including any encumbrances; 3) the actual cash value and amount of loss for each item damaged, destroyed or stolen; 4) any other insurance that may cover the loss; 5) any changes in title, use, occupancy or possession of the property that have occurred during the policy period; and 6) at our request, the specifications of any damaged building structure or other structure. We have no duty to provide coverage under this section if you, an insured person, or a representative of either fail to comply with items a) through g) above, and this failure to comply is prejudicial to us. 4. Our Settlement Options In the event of a covered loss, we have the option to: a) repair, rebuild or replace all or any part of the damaged, destroyed or stolen property with property of like kind and quality within a reasonable time; or b) pay for all or any part of the damaged, destroyed or stolen property as described in Condition 5, How We Pay For A Loss. Within 30 days after we receive your signed, sworn proof of loss, we will notify you of the option or options we intend to exercise. 5. How We Pay For A Loss Under Dwelling Protection Coverage A, Other Structures Protection Coverage B and Personal Property Protection Coverage C, payment for covered loss will be by one or more of the following methods: a) Special Payment. At our option, we may make payment for a covered loss before you repair, rebuild or replace the damaged, destroyed or stolen property if: 1) the whole amount of loss for property covered under Dwelling Protection Coverage A and Other Structures Protection Coverage B, without deduction for depreciation, is less than $2,500 and if the property is not excluded from the Building Structure Reimbursement provision; or 2) the whole amount of loss for property covered under Personal Property Protection Coverage C, without deduction for depreciation, is less than $2,500, your Policy Declarations shows that the Personal Property Reimbursement provision applies, and the property is not excluded from the Personal Property Reimbursement provision. b) Actual Cash Value. If you do not repair or replace the damaged, destroyed or stolen property, payment will be on an actual cash value basis. This means there may be a deduction for depreciation. Payment will not exceed the Limit Of Liability shown on the Policy Declarations for the coverage that applies to the damaged, destroyed or stolen property, regardless of the number of items involved in the loss. You may make claim for additional payment as described in paragraph c) and paragraph d) below if applicable, if you repair or replace the damaged,

20 Page 20 of 29 destroyed or stolen covered property within 180 days of the actual cash value payment. c) Building Structure Reimbursement. Under Dwelling Protection Coverage A and Other Structures Protection Coverage B, we will make additional payment to reimburse you for cost in excess of actual cash value if you repair, rebuild or replace damaged, destroyed or stolen covered property within 180 days of the actual cash value payment. This additional payment includes the reasonable and necessary expense for treatment or removal and disposal of contaminants or pollutants as required to complete repair or replacement of that part of a building structure damaged by a covered loss. This additional payment shall not include any amounts which may be paid or payable under Section I Conditions, Mold, Fungus, Wet Rot And Dry Rot Remediation As A Direct Result Of A Covered Water Loss, and shall not be payable for any losses excluded in Section I Your Property, under Losses We Do Not Cover Under Coverages A and B, paragraph B. Building Structure Reimbursement will not exceed the smallest of the following amounts: 1) the replacement cost of the part(s) of the building structure(s) for equivalent construction for similar use on the same residence premises; 2) the amount actually and necessarily spent to repair or replace the damaged building structure(s) with equivalent construction for similar use on the same residence premises; or 3) the Limit Of Liability applicable to the building structure(s) as shown on the Policy Declarations for Dwelling Protection Coverage A or Other Structures Protection Coverage B, regardless of the number of building structures and structures other than building structures involved in the loss. If you replace the damaged building structure(s) at an address other than shown on the Policy Declarations through construction of a new structure or purchase of an existing structure, such replacement will not increase the amount payable under Building Structure Reimbursement described above. The amount payable under Building Structure Reimbursement described above does not include the value of any land associated with the replacement structure(s). Building Structure Reimbursement payment will be limited to the difference between any actual cash value payment made for the covered loss to building structures and the smallest of 1), 2) or 3) above. Building Structure Reimbursement will not apply to: 1) property covered under Personal Property Protection Coverage C; 2) property covered under Other Structures Protection Coverage B that is not a building structure; 3) wall-to-wall carpeting, fences, awnings and outdoor antennas, whether or not fastened to a building structure; 4) roof surface(s) when the loss is caused by windstorm or hail; or 5) land. Payment under a), b) or c) above will not include any increased cost due to the enforcement of building codes, ordinances or laws regulating or requiring the construction, reconstruction, maintenance, replacement, repair, relocation or demolition of building structures or other structures. d) Personal Property Reimbursement. Under Personal Property Protection Coverage C, we will make additional payment to reimburse you for cost in excess of actual cash value if you repair, rebuild or replace damaged, destroyed or stolen covered personal property or wall-to-wall carpeting within 180 days of the actual cash value payment. Personal Property Reimbursement payment will not exceed the smallest of the following amounts: 1) the amount actually and necessarily spent to repair or replace the property with similar property of like kind and quality; 2) the cost of repair or restoration; or 3) the Limit Of Liability shown on the Policy Declarations for Personal Property Protection Coverage C, or any special limit of liability described in the policy, regardless of the number of items of personal property involved in the loss. Personal Property Reimbursement will be limited to the difference between any actual cash value N N CW